Familiar faces in Philippine politics, global supply chain snarls and Iceland pokes fun at the metaverse
November 2021
Hello and welcome! 👋
November turned out to be a particularly busy month with a torrent of major headlines everyday. Besides the emergence of the Omicron variant, there was the COP26 summit in Glasgow, a historic plenum in China, chaos at the Belarus-Poland border, worsening conflicts in Ethiopia and Sudan, and much more.
This edition will focus on nepotism in Philippine politics, global supply chain troubles, and how the metaverse is shaping cultural conversations. Thanks for reading!
KEEPING IT IN THE FAMILY
The ballots due to be printed for May’s presidential election in the Philippines will feature a list of familiar names.
Boxing hero Manny Pacquiao, who currently serves in the country’s senate, threw his hat into the ring (excuse the pun) in September. Yet despite his sports icon status, Pacquiao’s star power and anti-corruption pledges are being overshadowed by the recent pairing of Ferdinand Marcos Jr and Sara Duterte.
The offspring of two presidents forming an alliance has set tongues wagging not only in the Philippines but in diplomatic circles as well. [FYI: Ferdinand Marcos Jr is the son of late Filipino dictator Ferdinand Marcos, and Sara Duterte is the daughter of outgoing president Rodrigo Duterte.]
Initially, there was speculation that Sara would fight for the top position, allowing her father to register as her running mate. Although Rodrigo is barred by the constitution from seeking a second term, he is permitted to try for other government roles. But on 13 November, Sara filed her bid for vice president and joined Team Marcos Jr.
Sara’s decision immediately sparked rumours of a family feud, and some wondered whether father and daughter would battle it out publicly. [Reminder: In the Philippines, the president and vice president are elected in separate contests.] However, the Duterte clan quickly issued a statement of “love” and said Rodrigo would run for senator instead in the upcoming race.
Soap opera aside, the Marcos-Duterte partnership underlines the normalisation of political dynasties in the Philippines. Furthermore, there are concerns about Marcos Jr rewriting the past and “airbrushing” the sins of his parents.
SERIOUS SUPPLY SNAGS
One topic seems to be dominating boardroom discussions around the world: supply chain woes.
The phrase ‘supply chain’ was mentioned literally thousands of times in calls with investors during the last earnings season. The likes of Oatly, Adidas and Toyota have warned about the risks of shortages and production delays due to various bottlenecks.
Even Christmas advertising campaigns are being rejigged “to ensure that the messaging aligns to what they [brands and retailers] can deliver”. To avoid disappointment, Ty Inc. took matters into its own hands and booked dozens of cargo flights to air lift Beanie Babies toys from factories in China to Chicago O’Hare Airport.
As CNBC explains, the supply chain problem encompasses several issues, including a semiconductor crunch, higher commodity costs, a lack of workers and port congestion. Each of these issues are related but independent.
Deep Dive explored the semiconductor crisis in March, when surging demand for computer chips squeezed already low stockpiles. Analysts at JPMorgan and other banks expect the shortage to drag into 2022, and potentially 2023.
On the labour front, the Great Resignation has shrunk the pool of eager workers, particularly in the services sector. And, of course, Covid-19 is still a factor - the pandemic continues to disrupt manufacturing in Vietnam, impact pilot rosters in Hong Kong, trigger city-wide restrictions in China, and so on. In the UK, Brexit is adding to the mess as many EU nationals now need permits to officially contribute to the domestic economy.
These pressures are putting an enormous strain on the international logistics and freight industries. The logjam at the Port of Los Angeles has become a symbol of the supply chain predicament. Reports of ships waiting days to anchor forced the White House to get involved this month.
Since supply is part of the inflation equation, these bottlenecks have caused input costs to rise drastically. However, strong consumer appetite for goods is spurring companies to pass on price hikes to shoppers, which some say is an opportunistic move.
ICELAND TROLLS THE ZUCK
Mark Zuckerberg’s obsession with the ‘metaverse’ is proving to be excellent fodder for comedians and clever marketers.
While the Facebook boss wants us to socialise, work and shop virtually, Iceland’s tourism agency is encouraging people to try the ‘Icelandverse’. In a hilarious video, the Nordic concept is presented by a Zuckerberg-esque spokesman who promotes the country’s spectacular nature and landscapes.
He tells viewers to appreciate “enhanced, actual reality without silly looking headsets”. The Icelandverse is “completely immersive with water that’s wet…skies you can see with your eyeballs and volcanic rocks you can caress”. Can your avatar enjoy the same experience?
Despite the jokes, the metaverse is gaining traction among governments and corporations. For instance, Barbados is aiming to establish digital sovereign land with a metaverse embassy. And Nike is launching ‘NIKELAND’ on Roblox (a video game platform), allowing its players to outfit their avatars with special Nike products.
As always, please feel free to share the newsletter with your friends and family. Take care and stay curious, Sara x